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If MFJ and household income in above 133K but spouse earned income is low,(2000) and collects social security can taxpayer still make a deductible spousal contribution?
I said yes, the tax deductible contribution can be made and I have entered this into the IRA worksheet, and there are no errors reported, but the clients financial advisor is insisting that because of the household income it cannot be done. This makes a significant difference in the refund. What should I do?
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Household income? That isn't what you use for the determination.
The IRS knows:
MAGI:
https://www.irs.gov/publications/p590a#en_US_2020_publink1000230500
"Level Up" is a gaming function, not a real life function.
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I guess I am correct because I did base it on the MAGI and adjusted for social security recipient.
Thank you.
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"I guess I am correct because I did base it on the MAGI"
Well, there's a reason we use computer programs to do this type of work.
"and I have entered this into the IRA worksheet, and there are no errors reported"
There you go, then.
And "but the clients financial advisor is insisting that because of the household income it cannot be done." means they are not using a good computation program, then.
"Level Up" is a gaming function, not a real life function.
